Taking Advantage of Risk

Collection

The New Globalization

Globalization may seem to be in retreat, but that’s not the full story. Yes, nationalism and protectionism are pulling things apart, but digital technologies are bringing things—people, devices, processes—together. It’s time to update your world view.

In more predictable times, a narrow focus on business matters made sense. Today, it’s risky. Business leaders must raise their game to deal with the increasing interconnectedness of companies, economies, and societies.

Professional Arab women juggle more responsibilities than their male counterparts, and they face more cultural rigidity than Western women. Leila Hoteit explains what their success can teach us about tenacity, competition, priorities, and progress.

Martin Reeves, Director
BCG Henderson Institute

What We Are Reading

In understanding and explaining human behavior, write psychologists Lee Ross and Richard Nisbett, we invariably overestimate the importance of the actor and underestimate the importance of context. To understand our actions, we need to consider the situation we’re in.

While the authors mainly discuss non-business situations, the implications for business are clear. Organizational behavior is shaped as much or more by context as by people and their motives. The same is true for the outcome of a strategy—the external context plays a crucial role.

It’s a useful caution for business leaders: Look at the context. Step back and consider the larger frame.

In a complex, dynamic, and interactive world, it often makes sense to think of businesses not as machines, which are easily manipulated to deliver predictable outcomes, but as complex adaptive systems, which are not.

John Holland, a professor of psychology, computer science, and engineering, goes beyond describing such systems to consider how their structure arises and how they can be “steered.”

Signals (in a business, this could be a memo from senior executives) and boundaries (a functional unit, for example) are important in this regard. Understanding the intricate hierarchical arrangement of signals and boundaries, Holland writes, is essential to understanding how to influence these systems.

The Boston Consulting Group is an Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, age,religion, sex, sexual orientation, gender identity / expression,national origin, protected veteran status, or any other characteristic protected under federal, state or local law,where applicable.

This website uses cookies to improve functionality and performance. If you continue browsing the site, you are giving implied consent to the use of cookies on this website. See our Cookie Policy for details.